{"id":22089,"date":"2016-10-23T17:15:18","date_gmt":"2016-10-23T22:15:18","guid":{"rendered":"http:\/\/olduvai.ca\/?p=22089"},"modified":"2016-10-23T17:15:39","modified_gmt":"2016-10-23T22:15:39","slug":"china-moves-forward-with-its-de-dollarization-strategy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=22089","title":{"rendered":"China Moves Forward with Its De-Dollarization Strategy"},"content":{"rendered":"

China Moves Forward with Its De-Dollarization Strategy\u00a0<\/a><\/h3>\n

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The world monetary order is changing. Slowly but steadily, global trade and currency markets are becoming less dollar-centric. Formerly marginal currencies such as the Chinese yuan now stand to become serious competitors to U.S. dollar dominance.<\/p>\n

Could gold also begin to emerge as a leading currency in world trade? Over time, it certainly could. But the more immediate implications for gold\u2019s monetary role center on its increasing accumulation by central banks such as China\u2019s.<\/p>\n

As of October 1st<\/a>, the Chinese yuan has entered the International Monetary Fund\u2019s Special Drawing Right (SDR) basket of top-tier currencies. It now shares SDR status with the U.S. dollar, euro, British pound, and Japanese yen.<\/p>\n

Before the yuan officially becomes an SDR currency, the World Bank intends to\u00a0sell $2.8 billion in SDR bonds in Chinese markets<\/a>. The rollout of SDR bonds in China began August 31st. According to\u00a0Reuters<\/a>, China\u2019s promotion of SDR bonds \u201cis part of a wider push in China to\u2026 boost demand for Chinese yuan and diminish reliance on the U.S. dollar in global reserves.\u201d<\/p>\n

King Dollar won\u2019t be dethroned overnight. But the place of prominence the U.S. dollar enjoys as the world’s reserve currency will indeed diminish over time.<\/p>\n

Yuan\u2019s Inclusion in the SDR Currency Basket: Merely a Part of China\u2019s De-Dollarization Strategy<\/h4>\n

China and Russia have mutual geostrategic interests in helping to promote de-dollarization. Toward that end, the two powers are engaging in bilateral trade deals that bypass the dollar. Annual bilateral trade between China and Russia has surged from $16 billion in 2003 to nearly $100 billion today. When China hosted\u00a0the G20 summit in September, it will make Russian President Vladimir Putin\u00a0its premier guest of honor<\/a>.<\/p>\n

U.S. officials are none too pleased. They fear Putin aims to expand his global reach by forging stronger ties with China.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

China Moves Forward with Its De-Dollarization Strategy\u00a0 The world monetary order is changing. Slowly but steadily, global trade and currency markets are becoming less dollar-centric. Formerly marginal currencies such as the Chinese yuan now stand to become serious competitors to U.S. dollar dominance. Could gold also begin to emerge as a leading currency in world […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[61,63,14503,130,1025,344,366,374,536,7644,660,694,14502,839,1031],"class_list":["post-22089","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banking","tag-banks","tag-bilateral-trade","tag-china","tag-de-dollarization","tag-g20","tag-global-economy","tag-gold","tag-money","tag-political-theory","tag-putin","tag-russia","tag-stefan-gleason","tag-us-dollar","tag-yuan"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22089","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22089"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22089\/revisions"}],"predecessor-version":[{"id":22091,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22089\/revisions\/22091"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}